Tech companies have always been in the news regarding their business policies and most of the times such type of news negatively affects their performances. Facebook and Tesla are one of those companies which got a huge amount of criticism for how they’re operating, but it seems like a hard phase of such companies have now ended. Recently Tesla declares that company has managed to earn a massive amount of profit in last quarter of 2018 and same thing happened with Facebook also. Both tech companies have outperformed everyone’s expectations regarding amount of revenue or growth rate. Tesla while releasing its fourth-quarter report said that it is expecting to earn a right amount of profit in next year also. On the other hand, Facebook’s Q4 earnings reports shows that company managed to increase its revenue by a right margin and most importantly user base of Facebook remained the same.
Many techs and business analysts were predicting that after facing data scandal controversies user base of Facebook will get declined, but nothing like that happened. There are some intelligent investors like Peter Lynch who are still investing a vast amount of money into Tesla because Peter thinks company has got a good chance of succeeding than its competitors. Many investors who are in long term don’t react on rumours because they carefully study those companies which they think might add value to their portfolios, it seems like in future Facebook and Tesla might be those companies.
Tesla which was on the verge of bankruptcy a few months ago now finally has a considerable amount of cash reserves with it which company is expecting to use in its production of Model 3 cars. Facebook, on the other hand, hasn’t got that much affected because of its data scandals because this social media tech giant company is more popular and addictive among teenagers than anyone’s expectations also that’s why so many people don’t care about such type of data privacy scandals.